Wizz Air Sits Pretty In Growth Market As Potentially Ugly Brexit Threatens Other European Airlines

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Wizz Air is well-positioned to make the most of a bad Brexit situation

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From its launch in 2003, Wizz Air has focused on maintaining a lean low-cost operation backed by a strong ancillary revenue strategy. This has allowed the airline to grow while maintaining a healthy net profit margin and favorable cash flow. This year, Wizz Air added 125 new routes and earned a separate Wizz Air UK operating license which will help protect the airline from potential Brexit service interruptions. Wizz Air was also sitting on over €1.316 billion in unrestricted cash at the end of the financial year.

One could argue with Ryanair's numbers, but the Lufthansa Group acknowledges that its low-cost brand Eurowings is suffering, even as Wizz Air builds new bases in Bremen and Vienna., the Lufthansa Group said it will tackle the challenges to its European routes that include “market-wide over-capacities and increasing competition from low-cost carriers trying to capture market share with low prices.

 

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